World News
WCI World Container Freight Rate Index Drops to Record Low
Drewy Maritime Research Thursday announced that the World Container Index (WCI) has dropped to its lowest reading ever, at just $701 per 40-foot container.
This was the lowest reading since the WCI started tracking weekly transatlantic, transpacific and Asia-Europe rates in June 2011.
Drewry also noted that index rate assessments for the Shanghai-Rotterdam and the Shanghai-Genoa routes fell to all-time lows of $354 and $341 per 40-foot box respectively, while the latest Shanghai-Los Angeles rate of $878 per 40-foot container was said to be "marginally higher" than the record low for that route.
"The World Container Index's composite index is now 60% lower than the average of the past five years and has decreased by 62% in the past year," said Richard Heath, director of WCI.
"Rate reductions are spreading across all routes, as the shipping market continues to soften. This is good news for shippers' cost budgets, as the latest average index value of $701 per 40 ft represents an expense of less than ten cents per km and makes products competitive even in remote markets," said Philip Damas, director, Drewry, which jointly owns the WCI with Cleartrade Exchange.
The World Container Index is a weekly container pricing index that is managed independent of carriers and government authorities.
The index is a composite of prices on eleven global East-West routes connecting Asia, Europe and the US.
In January of 2016 Ship & Bunker reported that the Drewry Benchmarking Club Contract Rate Index showed that freight rates were falling along with oil prices.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 555.00 | 5.50 | 672.00 | 3.00 |
| Rotterdam | 516.50 | 4.00 | 653.50 | 0.50 |
| Houston | 556.00 | 8.00 | 681.00 | 10.00 |
| Fujairah | 548.00 | 1.00 | 749.50 | 2.50 |
| Global 20 Ports Average | 577.00 | 0.50 | 751.50 | 2.00 |
| Global 4 Ports Average | 544.00 | 1.50 | 689.00 | 4.00 |
| Global Average Bunker Price | 629.00 | 0.50 | 800.50 | 0.00 |
Popular Now More
-
Dec 23Since its launch in late June, the company's first 100 deliveries have primarily focused on LSMGO supply by barge to container ships and tankers in New York Harbor, CEO John Barbarise tells Ship & Bunker. -
Dec 23The company carried out worldwide marine fuel trading from offices in Singapore. -
Dec 24The 9,500 DWT heavy lift vessel Ursa Major sustained an engine room explosion in the Strait of Gibraltar at about 12:30 PM local time on Monday.